Danske Bank uses a system of workshops involving procurement, suppliers and consultants to solve business problems, explained Bo Dungal, head of procurement innovation, at last month’s ProcureCon Indirect in Copenhagen.
Tackle pain points
By inviting competitors and firms from the start-up community, Danske Bank is “leveraging the brain power of our third party providers”, said Dungal.
It is critical to define the problem you want to solve, the goals and the success criteria, he stressed. “Through co-creation, design thinking, they will in a day, a week, for free, create a [minimum viable product] or prototype and we will get tomorrow’s best.”
Workshops are carried out to solve problems. One led to a fundamental rethink on the way debt collection should be handled, said Dungal. The bank has run 23 events since the programme was started 18 months ago. “It’s learning by burning,” said Dungal. “Only one hasn’t being a success.”
The rest of the bank has taken some time to get on board: “When we started this there was a huge corporate immune system.”
Corporations will want to help you for free. “When I ask why they want to do it for free they say: ‘This is the best way to get to know Danske Bank’,” said Dungal.